New Invester Needs Guidance
We are new to real estate investing. Are there any forms available for figuring cash flow, etc.? We need a guide as to how much to account for vacancy rates, maintenance fees, etc. Also, what is considered a good cash flow. We have a duplex. What is a good monthly return after expenses, loan payments. etc.?
Thanks for your help.
Mark, N.O., La.
You are going to need to find more money - lol.
In all serious, commercial deal generally require 20% down.
- You could try having the seller carry the loan (if they outright own the prop).
- borrow from family
or
Start smaller. 4 unit and below to get started. With a credit score of 780 you will have no problem getting 100% financing for 4 unit and below - you just need to ask the right people. After a few years and after the properties build equity - you can sell and use the cash to buy a larger property.
Some local banks will loan 90 percent on commercial, I would check with one of them.
UTILITY SERVICES AND MECHANICAL REPAIRS: In the event of utility outages or mechanical failures, this includes but is not limited to Gas, Electric, Water, Sewer, Plumbing or Heating and Cooling systems, Owner/Agent will make every effort to perform repairs to restore service in a reasonable period of time. “A reasonable period of time” is defined as 30 days by Ohio Revised Code. Said repairs may be done by Owner/Agent or local utility company and sometimes require city permits. Tenant under no circumstances may deduct any portion of the rent as compensation or for the inconvenience. Tenants failure to pay the full rental amount when due will result in late fees and default of this lease agreement.
I was burned 2 times last year on this. 1 whole building ganged up on me. No electric.
In my leases it is in bold and all caps that my insurance does not cover their personal property. They must secure renters insurance to cover their own stuff.
Interestingly enough, I had forest fire next to one of my houses and it burned up the shed (didnt damage the house). They claimed it was their shed and their insurance paid for it. Of course they kept the money too.
Chuck
I just learned by experience that you must put a clause in that prevents the tenants from shutting off the heat before they leave for winter vacation. Otherwise, when the pipes burst, it is your fault for not warning them about the possibility that the pipes may freeze, explode, and ruin your hardwood floors and ceilings.